DALLAS (WBAP/KLIF) – Dallas based Southwest Airlines reported its fourth quarter and full year 2022 financial results on Thursday.
The report’s release comes a month after a scheduling debacle at Southwest Airlines led to nearly 17,000 canceled flights.
According to the report, Southwest Airlines experienced a fourth quarter net loss of $220 million, or $0.37 loss per diluted share. The airline saw a full year net income of $539 million, or $0.87 per diluted share.
“Due to the operational disruptions in late December, which resulted in more than 16,700 flight cancellations, we incurred a fourth quarter pre-tax negative impact of approximately $800 million, which resulted in a fourth quarter 2022 net loss,” said Bob Jordan, SWA President and Chief Executive Officer. “Despite the negative financial impacts in first quarter 2022 due to the Omicron variant and in fourth quarter 2022 due to the operational disruptions, we generated full year 2022 net income, excluding special items, of $723 million.”
With regard to the operational disruptions, Jordan said he is deeply sorry for the impact to Southwest Airlines employees and customers.
“We have swiftly taken steps to bolster our operational resilience and are undergoing a detailed review of the December events,” said Jordan. “In addition, our Board of Directors has established an Operations Review Committee that is working with the Company’s Management to help oversee the Company’s response. As part of our efforts, we are also conducting a third-party review of the December events and are reexamining the priority of technology and other investments planned in 2023.”
Financial losses are lingering beyond the December operational issues, according to the report.
“Based on current revenue and cost trends, we currently expect a first quarter 2023 net loss,” said Jordan. “However, we are encouraged by current booking trends in March 2023.”
The airline said it remains on achieving the long- term financial goals outlined at our December 2022 Investor Day.
“We also intend to regain our 51-year reputation for operational excellence,” Jordan insisted.
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